Deputy Commissioner Of Income Tax, Circle 6(1)(2), Bengaluru V. M/s. Snowman Logistics Ltd., Bengaluru

ITA 517/BANG/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 7527 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 02-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R RAMESH
• Assessee Lawyers: K P SRINIVAS
• Keywords: Bad and doubtful debts

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER ITA NO. 517 /BANG/201 7 ASSESSMENT YEAR : 20 12 - 13 THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 6(1) (2), BANGALORE. VS. M/S. SNOWMAN LOGISTICS LTD., NO. 54, VIRGO NAGAR, OLD MADRAS ROAD, BANDAPURA VILLAGE, BIDAREHALLIHOBLI, BANGALORE 560 049. PAN: AAFCS 3514H APPELLANT RESPONDENT ASSESSEE BY : SHRI K.P. SRINIVAS, CA REVENUE BY : SHRI B.R. RAMESH, JCIT ( DR) DATE OF HEARING : 20 .0 9 .201 7 DATE OF PRONOUNCEMENT : 28 .09 .2017 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS IS A REVENUES APPEAL DIRECTED AGAINST THE ORD ER OF LD. CIT(A), BANGALORE-6, BANGALORE DATED 11.11.2016 FOR ASSESSMENT YEAR 2012 -13. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. THE ORDER OF THE CIT (APPEALS) IS OPPOSED TO LAW AND THE FACTS AND CIRCUMSTANCES OF THE CASE. 2. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE, T HE CIT(A) ERRED IN APPLYING THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF TRF LIMITED WITHOUT APPRECIATING THAT THE FACTS IN THE INSTANT CASE ARE DIFFERENT, IN AS MUCH AS THE ASSESSEE HAD FAILED TO ESTABLISH THAT THE DEBTS HAVE ACTUALLY BECOME BAD. 3. FOR THESE AND SUCH OTHER GROUNDS THAT MAY BE URG ED AT THE TIME OF HEARING, IT IS HUMBLY PRAYED THAT THE ORDER OF THE CIT(A) IN SO FAR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND TH AT OF THE ASSESSING OFFICER BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL. 3. THE LD. DR OF REVENUE SUPPORTED THE ASSESSMENT O RDER WHEREAS THE LD. AR OF ASSESSEE SUPPORTED THE ORDER OF CIT(A). HE ALSO SU BMITTED THAT THE ISSUE ITA NO.517/BANG/2017 PAGE 2 OF 2 INVOLVED WAS DECIDED BY CIT(A) BY FOLLOWING THE JUD GMENT OF HONBLE APEX COURT RENDERED IN THE CASE OF T.R.F. LTD. VS. CIT A S REPORTED IN 323 ITR 397. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT AS PER THE ASSESSMENT ORDER, THE OBJECTION OF THE AO IS THIS T HAT THE ASSESSEE COMPANY HAD NOT TAKEN ANY EFFECTIVE STEPS TO RECOVER THE AM OUNT OF DEBTS. AFTER THE AMENDMENT IN THE PROVISION OF SECTION 36 (1) (VII) W.E.F. 01.04.1989, THIS IS NOT REQUIRED TO BE SHOWN BY THE ASSESSEE THAT THE DEBTS IN QUESTION HAS BECOME BAD AND ONLY REQUIREMENT IS THIS THAT THE ASSESSEE SHOULD WRITE IT OFF IN THE BOOKS OF ACCOUNTS. THIS IS NOT THE OBJECTION OF TH E AO THAT BAD DEBTS ARE NOT WRITTEN OFF IN THE BOOKS OF ACCOUNTS AND THEREFORE, THE DISALLOWANCE MADE BY THE AO IS NOT JUSTIFIED. WE FIND NO REASON TO INTE RFERE IN THE ORDER OF CIT(A) ON THIS ISSUE BECAUSE AS PER THE JUDGMENT OF HONBLE A PEX COURT RENDERED IN THE CASE OF T.R.F. LTD. VS. CIT (SUPRA), THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE. WE THEREFORE, DECLINE TO INTERFERE I N THE ORDER OF CIT(A). 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/- SD/- (SUNIL KUMAR YADAV) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 28 TH SEPTEMBER, 2017. /MS/ COPY TO: 1. APP ELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.